A consortium of a few of the UK’s largest pension suppliers are exploring the creation of a £1 billion fund to spend money on scaling companies.
The proposed UK Scale-up Fund, backed by pension corporations together with Nest, Railpen, LPPI and Border to Coast, would “goal the perfect alternatives born out of UK innovation in science and know-how”.
The British Enterprise Financial institution is supporting the launch of the fund and with the intention of investing in partnership with the group.
Prime minister Andy Burnham mentioned:
“Right now sends a transparent message: this can be a vote of confidence in British enterprise, British expertise and British ambition.
“This new fund would assist unlock good progress in each postcode, connecting pension funding with the entrepreneurs and applied sciences that may reindustrialise Britain and create the roles of the long run.
“Which means extra alternatives for working folks, stronger returns for savers, and extra companies selecting to start out, develop and keep in Britain.”
Enterprise, innovation, science and commerce secretary Jonathan Reynolds added:
“Britain leads the best way in science, know-how and innovation, and we need to guarantee extra of our most promising companies can begin, scale and succeed right here within the UK.
“The ambition of main pension suppliers to again the subsequent era of British success tales is a vital vote of confidence in UK innovation. By investing in progressive UK firms, they can assist drive long-term progress whereas serving to pension savers share of their success.
“Our message is obvious. Britain is open for enterprise, open to funding and decided to place science, know-how and innovation on the coronary heart of our financial future.”
The pension suppliers concerned within the fund signify outlined contribution, outlined profit and Native Authorities Pension Scheme funds.
Andy Bord, Railpen CEO, mentioned:
“Our precedence is all the time to ship robust long-term outcomes for our members. The UK is a dynamic powerhouse of innovation. The UK Scale-up Fund represents a compelling funding alternative the place disciplined, affected person capital can assist rising firms scale, present enticing returns for pension savers and generate lasting financial progress.
“We’re happy to have helped form this initiative, which can play an important position in supporting bold firms with world attain to construct their future right here within the UK, making a stronger financial system for our members to retire into.”
Ian Cornelius, Nest CEO, added:
“The UK is residence to many progressive, high-growth companies and has a robust observe report of nurturing world-leading science and know-how firms, with lots of immediately’s world success tales based right here.
“As a long-term investor on behalf of greater than 14 million members, Nest sees an essential position for pension capital in serving to profitable UK companies entry the funding they should develop. We consider there generally is a robust alignment between delivering enticing long-term outcomes for members and supporting innovation, job creation and financial progress throughout the UK.”
